[Federal Register Volume 64, Number 43 (Friday, March 5, 1999)]
[Rules and Regulations]
[Page 10573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5484]
[[Page 10573]]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 1815
Waiver of Submission of Cost or Pricing Data for Acquisitions
With the Canadian Commercial Corporation and for Small Business
Innovation Research Phase II Contracts
AGENCY: Office of Procurement, Contract Management Division, National
Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: This rule amends the NASA Federal Acquisition Regulation
Supplement (NFS) to provide a class waiver from the FAR 15.403-4
requirement for the submission of cost or pricing data for Small
Business Innovation Research (SBIR) program Phase II contracts. A
waiver is permitted by FAR 15.403-1(c)(4). The rule also deletes the
end date for the existing waiver of the submission of cost or pricing
data for acquisitions with the Canadian Commercial Corporation (CCC).
In addition, this rule clarifies that assurances of price fairness and
reasonableness by the CCC should be relied on, but that contracting
officers are to ensure that the appropriate level of information other
than cost or pricing data is submitted by subcontractors to perform any
required proposal analysis, including a technical analysis and a cost
realism analysis.
EFFECTIVE DATE: March 5, 1999.
FOR FURTHER INFORMATION CONTACT: Mr. Joseph Le Cren, NASA Headquarters,
Code HK, Washington, DC 20546, telephone: (202) 358-0444, email:
joseph.lecren@hq.nasa.gov.
SUPPLEMENTARY INFORMATION:
Background
FAR 15.403-4 requires that cost or pricing data be submitted for
contract awards and modifications in excess of $500,000 unless one of
the exceptions at FAR 15.403-1(b) apply. One of the exceptions listed
there are waivers granted under FAR 15.403-1(c)(4). Waivers may be
granted under FAR 15.403-1(c)(4) by the head of the contracting
activity if the price can be determined to be fair and reasonable
without the submission of cost or pricing data.
NASA SBIR Phase II contract awards, which are generally limited to
$600,000, do not meet the FAR 15.403-1(b) adequate price competition,
prices set by law or regulation, or commercial item exceptions.
However, a class waiver is considered to be in the Government's
interest to promote maximum small business participation in the SBIR
program and increase the number of small businesses participating in
Federal R&D contracts. The Government's payment of fair and reasonable
prices under SBIR Phase II contracts is ensured without the submission
of cost or pricing data by (i) contracting officers having access to
adequate information in the offerors' proposals; (ii) Phase II
proposals being subjected to multiple technical reviews; and (iii)
contracting officers having the ability under FAR 15.403-5(a)(3) to
request information other than cost or pricing data if additional
information is needed.
A class waiver for SBIR Phase II contracts would result in
consistent practices among NASA centers, thereby eliminating the
possible confusion encountered by contractors that deal with more than
one center for Phase II contracts. In addition, the value of the cost
or pricing data for SBIR Phase II contracts generally has been minimal
and has been found to result in delays in awards as the small
businesses often cannot provide the data quickly.
The elimination of the end date for the waiver of submission of
cost or pricing data from the CCC makes NASA's waiver consistent with
the one between the Department of Defense and the CCC. The current rule
states that the CCC will provide assurance of the fairness and
reasonableness of the proposed prices. This has been interpreted by
some to mean that no additional analysis is necessary. The revised rule
clarifies that, while this assurance is to be relied on, it may be
necessary to obtain information other than cost or pricing data from
subcontractors to the CCC in order to perform any required proposal
analysis, including a technical analysis and a cost realism analysis.
Impact
Regulatory Flexibility Act
This final rule does not constitute a significant revision within
the meaning of FAR 1.501 and Pub. L. 98-577, and publication for public
comments is not required. However, comments from small entities
concerning the affected NFS subpart will be considered in accordance
with 5 U.S.C. 610. Such comments must be submitted separately and
should cite 5 U.S.C. 601, et seq.
Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the NFS do not impose recordkeeping or information collection
requirements, or collections of information from offerors, contractors,
or members of the public which require the approval of the Office of
Management and Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 1815
Government procurement.
Tom Luedtke,
Acting Associate Administrator for Procurement.
Accordingly, 48 CFR Part 1815 is amended as follows:
PART 1815--CONTRACTING BY NEGOTIATION
1. The authority citation for 48 CFR Part 1815 continues to read as
follows:
Authority: 42 U.S.C. 2473(c)(1).
2. Section 1815.403-170 is revised to read as follows:
1815.403-170 Waivers of cost or pricing data.
(a) NASA has waived the requirement for the submission of cost or
pricing data when contracting with the Canadian Commercial Corporation
(CCC). This waiver applies to the CCC and its subcontractors. The CCC
will provide assurance of the fairness and reasonableness of the
proposed price. This assurance should be relied on; however,
contracting officers shall ensure that the appropriate level of
information other than cost or pricing data is submitted by
subcontractors to support any required proposal analysis, including a
technical analysis and a cost realism analysis. The CCC also will
provide for follow-up audit activity to ensure that any excess profits
are found and refunded to NASA.
(b) NASA has waived the requirement for the submission of cost or
pricing data when contracting for Small Business Innovation Research
(SBIR) program Phase II contracts. However, contracting officers shall
ensure that the appropriate level of information other than cost or
pricing data is submitted to determine price reasonableness and cost
realism.
[FR Doc. 99-5484 Filed 3-4-99; 8:45 am]
BILLING CODE 7510-01-P
